| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 80.02 | 176 |
| Intrinsic value (DCF) | 8.76 | -70 |
| Graham-Dodd Method | 4.99 | -83 |
| Graham Formula | 20.11 | -31 |
Sogeclair SA is a France-based aerospace and defense engineering company specializing in aeronautics, space, and transport solutions. Founded in 1986 and headquartered in Blagnac, the company operates through three key divisions: Aerospace, Vehicle, and Simulation. The Aerospace division offers engineering services in aerostructures, cabins, and systems, along with manufacturing and tooling solutions, including additive manufacturing and cockpit equipment. The Vehicle division focuses on designing and producing specialized civilian and military vehicles, terrestrial drones, and multi-mission platforms. The Simulation division provides turnkey simulators and software simulation platforms. Serving both civil and military markets, Sogeclair plays a critical role in Europe's aerospace and defense supply chain, leveraging its expertise in high-precision engineering and innovative manufacturing techniques. With a market cap of approximately €68.6 million, the company maintains a strong presence in France while contributing to global aerospace advancements.
Sogeclair SA presents a niche investment opportunity in the aerospace and defense sector, with a diversified business model spanning engineering, vehicle production, and simulation. The company's €157 million revenue and €4.4 million net income in the latest fiscal year reflect stable operations, supported by positive operating cash flow of €17 million. However, its high beta (1.515) suggests volatility, likely tied to defense spending cycles and aerospace demand fluctuations. The dividend yield (~4.5% based on a €0.96 per share payout) may appeal to income-focused investors, but the modest market cap and debt-to-equity considerations warrant caution. Long-term prospects hinge on defense contracts and aerospace innovation, particularly in additive manufacturing and simulation technologies.
Sogeclair competes in a specialized segment of the aerospace and defense industry, differentiating itself through integrated engineering and manufacturing capabilities. Its Aerospace division benefits from proximity to Airbus (a key client), offering niche aerostructure and cabin solutions that larger firms may overlook. The Vehicle division's focus on military and civilian adaptations provides diversification, though it faces stiff competition from established defense contractors. The Simulation segment, while smaller, leverages proprietary software platforms, a competitive edge in training and mission planning. However, Sogeclair's relatively small scale limits its ability to compete for mega-projects against giants like Safran or Thales. Its competitive advantage lies in agility, customization, and deep aerospace expertise, but reliance on European defense budgets and Airbus's supply chain introduces cyclical risks. The company's €20.4 million cash reserve provides liquidity, but its €30.8 million debt could constrain R&D investments compared to deeper-pocketed rivals.